iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,436 Blog Posts

Fizzle

To be continued. The bulls escaped what should have been a 1929 style rout today, on the backs of that fucked up housing number. Get this folks: housing is at a fresh new low, yet here we are making believe shit is good, based solely upon the stock prices. Huh?!?

Since when has the market been a good forward looking indicator? Do not be tricked by the tricksters with chocolate bars in their side pockets.

Put aside the price action for a minute and recognize what’s going on. Have a moment of clarity, while enjoying the serenity of life, over an OVERSIZED mug filled with Monster Energy Soda. Things are getting worse. I was on board, 100%, just a few months ago. I based my bullish thesis on low inventory levels and a “normalization” of earnings. However, since then, things have taken a fucking turn for the worse, AND MORE. The entirely of the South East and Gulf of Mexico is in danger of becoming America’s “Deadlands.” You cannot simply ignore these headwinds and expect good results.

Until better data, I will remain light in equities, heavy in cash, and light in shorts. Remember, my goal is not to make a killing selling short. I am only interested in preservation of capital, coupled with a little growth. On a personal level, I am balls to the wall short. As a matter of fact, and this might draw a good deal of criticism, should the market go against me: I am 100% short, no cash.

[youtube:http://www.youtube.com/watch?v=Gpgy9IA4mKE&feature=youtube_gdata 616 500]

Indeud.

[youtube:http://www.youtube.com/watch?v=pyYcB9AUMmU 616 500] If you enjoy the content at iBankCoin, please follow us on Twitter

68 comments

  1. Caffeinated

    The most interesting market in the world. “If it punched you in the face, you’d have to resist the urge to thank it”.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  2. MarshalN

    That’s a bold call — I’m on board the TZAmobile.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  3. TheArtist

    you will be a billionaire from your personal account.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  4. Taqiyya

    Makes sense, maybe even cents. The Owl of Minerva is wing fluttering on news Obama wants to issue an executive order to give immediate amnesty to the 12 million or so illegal immigrants. Sounds like go long on private prison operators. Whatever, the country is being buggered.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  5. tm

    When you say you’re 100% short personally, what exactly doesn that mean?…that your entire liquid net worth is short? Or that you’ve partitioned off a small slice of “good times” cash to play with?

    • 0
    • 0
    • 0 Deem this to be "Fake News"
    • Dr Fly

      Only idiots keep their net worth 100% in stocks.

      • 0
      • 0
      • 0 Deem this to be "Fake News"
      • tm

        I personally keep most of my wealth in oversized cowboy hats and boxes full of pinwheels. So you’ve got kind of a hedge on your career, via monster personal short sales…so if the market gets the “bris party in the middle of Demascus” style treatment, your business might potentially suffer from less new clients, but you are getting “TaZA’d” so it’s cool.

        • 0
        • 0
        • 0 Deem this to be "Fake News"
  6. TraderCaddy

    The Wimbledon match is now 59-59 and on ESPNU-HD.
    Just suspended the match.
    Lazy players.
    Should have sent Fly over there with his racquet or me with my Jack Kramer Wilson wood racquet.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
    • Gunners

      incredible day in the world of sports

      • 0
      • 0
      • 0 Deem this to be "Fake News"
      • mrkcbill

        Flip on Fox Sports and Watch this Strasburg mow down the Royals.
        Paul Bunyan

        • 0
        • 0
        • 0 Deem this to be "Fake News"
        • TraderCaddy

          Congrats to your Royals. I see Srasburg struck out 9 in some six innings.
          Looks a little like Pedro Martinez or Sandy Koufax when on the mound
          He needs to not throw as hard as often or else he won’t last (like Koufax).
          What happened to the KC ribs avatar?

          • 0
          • 0
          • 0 Deem this to be "Fake News"
  7. scott

    Ballsy. simply ballsy.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  8. Kreizi

    Must be tough to manage two accounts–clients’ and personal. It’s sort of trying to win in chess with yourself as a partner.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  9. Fly Leech

    One of the major events of the Great Depression was the Dust Bowl. Perhaps the Gulf “Deadlands” will be our new Dust Bowl.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  10. Mr. President

    The same song I’ve been singing for the past 3 weeks: DOW 9000!

    I’ve been 100% short for 2 weeks. Now I have Le Fly on my side. “Win” is in our future, indeed.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  11. Mr. President

    PS, Drake’s the best lyricist in the world right now.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  12. Lance Armstrong
    Lance Armstrong

    Or in my case, “ball to the wall short”

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  13. duck

    time to capture the rain in LA?

    http://www.huffingtonpost.com/2010/06/23/raining-oil-in-louisiana_n_622815.html

    • 0
    • 0
    • 0 Deem this to be "Fake News"
    • 8

      Time for MON to develop CE corn (Corexit), so the oil can pass right through us. Of course, there will be no side-effects of the CE on biological organisms, well not unacceptable side-effects anyway… at least none you can prove without years of legal banter and disinformation.

      • 0
      • 0
      • 0 Deem this to be "Fake News"
      • duck

        Hah. Maybe we can eat it and crap out oil to power our cars. exxon and chipotle could have some great promotions together

        • 0
        • 0
        • 0 Deem this to be "Fake News"
  14. hmmm

    Okay, but in a depression scenario, the dollar is not what it used to be. Priced in dollars stocks lost what, 90% during great depression? Dow/Gold went to 1, but the dollar WAS gold. Shouldn’t that mean that when things go bad, the dollar doesn’t rally like crazy this time around and that means that stock priced in dollars don’t tank?
    Isn’t everything backwards this time so that people actually move into stocks and gold?

    Does anyone have a Germany stock market chart of the weimar republic and other hyperinflation scenarios? I heard someone earlier talking about how a deflationary crash happens before the inflation and I just wanted to see somereference points and see what they’re talkin about.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  15. dave

    Clouded the future is. Roll over on your stomach to the dark side.

    All the stellar news today was already priced in. That is today’s gay market action excuse.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  16. mrkcbill

    Fly great blogging.
    The news is so bad its comical…
    BP..Euro..Housing..DEBT PILE
    Could it be for the next year we
    just circle jerk between 9,500 and 11,000
    with violent moves each way…….
    The Psychology is broken on Wall Joke
    and D.C. no confidence no market.
    Rigged game buddy….these fuckers will
    rake every $100 bill in the game. ETF’s,
    DirexionX3 LMAO….BP , C, AIG…what a
    healthy market we have.

    Hey did you bann[sic] my buddy
    V.King bench press boy?

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  17. noodleboy

    shit yo, and I just went long at weekly support.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  18. Random Punk

    You have to guage globally.
    Comparing anything to “The Great Depression” is just a waste of time.

    I tend to side with “mrkcbill ” about the Dow bouncing between levels vs another cliff dive as the World Markets in general suck….but suck somewhat ‘equally’
    No fat kid on one side of the teeter totter

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  19. Cascadian

    Most of my money I spent on beer and women. The rest of it I just wasted.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
    • heaterman

      I wonder how many contractors lost their ass when work stopped along with payments. That place is sad at so many levels.

      • 0
      • 0
      • 0 Deem this to be "Fake News"
  20. Curious1

    Seeing this retarded market continue to shrug off bad news, from unexpected jumps in jobless claims to this miserable housing data and the ongoing disaster in the gulf, I can’t help but lean a little long right now (via SPY Calls) after this slight pullback. I am bearish overall, but I think the bull-jerkers will press us a bit higher before the next big toilet flush.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
    • Myke

      it’s the same pattern as last summer. tons of crap news and economic data piling up on the negative side and the market went on with a pretty massive non-stop run. the old mantra might be back (might). bad news = good news. good news = good news. trade accordingly.

      • 0
      • 0
      • 0 Deem this to be "Fake News"
  21. Carsony

    On a side note. Have yaw heard that song. “God is great ,beer is good, and people are crazy”

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  22. D.O.

    The Fly: do you follow 200 50 Day Simple Moving Averages (SMA) at all? Which do you follow?

    Thanks,

    D.O.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
    • Vegas Martin

      Charts are for idiots! The Fly reads the Wall Street Journal TWICE every day.

      • 0
      • 0
      • 0 Deem this to be "Fake News"
  23. JuiceyFruit

    100% short? I rike it! Not even honorary IBC fave, TK is 100% short at the moment.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  24. Le Fly

    100 percent short in personal accounts, not clients

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  25. Bullish

    Tomorrow will be a strong rally… I’m looking forward to it.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  26. MarshalN

    We need DevilDog, now.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  27. tradingnymph

    Wow Rudd just gave up the PM spot in the land down under…OZ popped but fading .

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  28. lol

    Market is Sso tzaerribly faztarded right now. I think it’s getting to the point where people say “bad news, yes! Things can’t get much worse, a rally is near!”

    I mean what on earth would happen if tommorrow we woke up and cancer was cured, a pill replacing the need for food was invented, apple released the iSex making it possible to get laid regardless of how fugly you are with a $10 per peice “app” compatible with a woman of your choice, the Messiah came down from heaven eliminating all debt, destroying all shorts, turning oil into wine, turning all leveraged shorts stocks to X100 upside ETFs, and converting all cars so that they run on “blessings” and giving everyone the power to eliminate anyone’s pessamism, and also blessed the buying of stocks and told everyone that the greater the stock portfolio, the greater the reward in heaven, and The Devil himself showed up and announced his retirement from evil, making sin feel horrible and doing good deeds for society and businesses feels better than doing coke? Dow 1,000,000?

    On the other hand, what the hell kind of news did people need to hear for the markets to crash today?

    • 0
    • 0
    • 0 Deem this to be "Fake News"
    • derr

      Scenario 1: markets go “super gay” and rally and continue to push higher until august sucking as many retards in that it can before the market wakes up and smells the shorts and supercrashes.
      Scenario 2: markets wake up within the next money and finally crash and exhaust themselves of margin calls probably around August as well foming a super bottom.

      I’m wondering what the hell the governments and Bernanke are going to do if the markets crash, have a $100,000 per person super awesome stimulous package ($30 Trillion)?

      US at some point is going to have to either
      A) Refuse to pay their unfunded liabilities (social security, medicare, etc)
      B) Borrow 100 trillion dollars to pay for it.
      C) Default on it’s debt
      D) something super radical which includes but doesn’t limit a number of things
      E) any combination of all of the above

      • 0
      • 0
      • 0 Deem this to be "Fake News"
  29. Bullish

    What if you go into earnings season and the vast majority of the “important” companies continue to beat and outperform? What if they continue to push productivity to unbelievable levels? Would you consider this bull run cheap after a 13% correction?
    Did anyone hear Chambers talking about the outlook?

    Bernanke has survived a brutal enviroment, he’s not about to give up on it now. They will make sure we get ample supply of free money. It has fueled the economy thus far, why give up now?

    Not sure if everyone else is hunkered down in a cave not spending money, but i see alot of money being sloshed around out there. The Fly himself has propped up the East coast GDP with Fine wine and palm trees that disinigrate to dust by winter time.

    You will have to excuse my rosy outlook but i drank four glasses of the Bernanke Koolaid tonight.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
    • arch

      i sir have faith… we go higher… the gloom and doom is over…and all the minute disorders in the world could be cured by phone calls.. also i beleave we caught a glimpse of that when the euro rose also when the yuan was valued up..was that a test to see what would happen or how much has to happen??? and it will happen

      • 0
      • 0
      • 0 Deem this to be "Fake News"
  30. Steve Place

    Article 88—Contempt toward officials

    “Any commissioned officer who uses contemptuous words against the President, the Vice President, Congress, the Secretary of Defense, the Secretary of a military department, the Secretary of Transportation, or the Governor or legislature of any State, Territory, Commonwealth, or possession in which he is on duty or present shall be punished as a court-martial may direct.”

    • 0
    • 0
    • 0 Deem this to be "Fake News"
    • omfgitsjd

      They are all gay.

      • 0
      • 0
      • 0 Deem this to be "Fake News"
    • Cascadian

      “”In the magazine article, McChrystal called the period last fall when the president was deciding whether to approve more troops “painful” and said the president appeared ready to hand him an “unsellable” position. McChrystal also said he was “betrayed” by Ambassador Karl Eikenberry, the man the White House chose to be his diplomatic partner in Afghanistan.

      He accused Eikenberry of raising doubts about Karzai only to give himself cover in case the U.S. effort failed. And he was quoted mocking Biden. “” ~~AP

      I don’t think any of that rises to “contemptuous.”

      con·temp·tu·ous?
      –adjective
      showing or expressing contempt or disdain; scornful

      Still, I think the guy was stupid to have that reporter get so comfortable around his staff, and to allow a culture where such talk was tolerated in his inner circle. Maybe he should not be general for having poor judgement.

      • 0
      • 0
      • 0 Deem this to be "Fake News"
      • heaterman

        The guy is a warrior, not a PR mouthpiece. He should not be expected to be PC as it is not his job.

        • 0
        • 0
        • 0 Deem this to be "Fake News"
    • yep

      Indeed. He knew that when he took the job. Everybody knows that, except Savage.
      I don’t listen to that drivel. It’s a sideshow distraction.

      • 0
      • 0
      • 0 Deem this to be "Fake News"
  31. Bman notes

    JANUARY
    Long month
    Winter rally historically fades in early January

    FEBRUARY
    Long month

    MARCH
    Long month
    St. Patrick’s Day Rally (March15-17)
    Late March short market
    Triple witching volume and volatility on 3rd Friday, final hour

    APRIL
    Long month
    Late April begin to short for long-term

    MAY
    Short or sideways month.

    JUNE
    Short or sideways month
    Low volume
    Triple witching volume and volatility on 3rd Friday, final hour

    JULY
    Short or sideways month
    Low volume

    AUGUST
    Short or sideways month
    Low volume

    SEPTEMBER
    Short or sideways month
    Bears win the week after options expiration in Sept.
    Rise after 9/11
    Rise after Labor Day
    Triple witching volume and volatility on 3rd Friday, final hour

    OCTOBER
    Short or sideways month
    Options Expiration Week 10/20
    Begin buying long positions middle of October
    October 19th, the day of the 1987 crash, has a reputation
    of not being kind to investors who are long stocks (bearish day).

    NOVEMBER
    Long month
    Options Expiration Week 11/17
    Trading around Thanksgiving usually is dictated by low volume and higher volaility

    DECEMBER
    Long month
    Options Expiration Week 12/15
    Triple witching volume and volatility on 3rd Friday, final hour

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  32. Stocksrider

    I cannot believe you put clips of a hate-mongering rating whore

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  33. Teahouse On The Tracks
    Teahouse On The Tracks

    OEW Summary for Wed:

    “Today’s early morning selling took the SPX down to the 50% retracement level, (see yesterday’s post), of the recent 1042-1131 Intermediate wave A rally. With an extreme short term oversold condition and holding at the OEW 1090 swing pivot the market then rallied. It’s certainly possible this was the low of Intermediate wave B. Nothing confirmed by the short term OEW charts yet, and the low may still get retested. However, as long as the OEW 1090 pivot range holds we should start to see higher prices soon. Looks like we’ll need to clear SPX 1100 to get the momentum going positive again.”

    As I predicted the other day, 1131>1088>1136 … Missed the low by a few points and revising the move back up to 1141 then selling longs in earnest and adding shorts for the ride down to 945. Laters …..

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  34. omfgitsjd

    Is it true that the former BP CEO now heading Goldman Sachs dumped 44% of their BP stock before the explosion? Did the current BP CEO dump 1.4 million pounds of his stock before the explosion?

    Maybe the mainstream media will cover this in some good old fashioned investigative reporting? NOT !!! LOL.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
    • J

      Is it true that the former BP CEO now heading Goldman Sachs dumped 44% of their BP stock before the explosion?

      What the fuck are you talking about. Blankfein, the current head of GS has never ever headed BP.

      • 0
      • 0
      • 0 Deem this to be "Fake News"
      • omfgitsjd

        Peter Sutherland IS managing director, as well as chairman, of Goldman Sachs International.
        He was until recently Chairman of BP.

        Just curious if the information going around the net had any merit.

        • 0
        • 0
        • 0 Deem this to be "Fake News"
  35. Skeptical

    nonetheless — the market is paying exorbitant prices for NFLX (gapping UP this morn), BIDU, SNDK… on and on.

    All the bad news being spouted here by amateurs is KNOWN. And half of it doesn’t even affect the economy.

    Pay attention to the markets, not your stupid opinions which nobody cares about.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
    • heaterman

      To completely ignore opinions would be foolish as they more than anything else are what actually drives the market when it comes down to it..
      Fly is correct in his assessment that the GoM fiasco will have far reaching and long lasting effects on our national economy. Not just the gulf area. This event is going to unfold over a very protracted period of time. I’m thinking that human, aquatic and other animal life on the shores of the gulf will not be the same for maybe 2-3 decades. They are hopelessly and irrevocably screwed.

      • 0
      • 0
      • 0 Deem this to be "Fake News"
  36. Diver Dan

    The trouble with the housing data is that it is localized but sold like it is countrywide (no pun intended). There are pockets of this country that are going to hell in a hand basket the way of the Dodo or Detroit. There are other pockets that, despite every effort to deflate the economy, housing prices still boom. I have been watching the SF Bay California housing market for several years waiting for it to find a fucking bottom, but they are still selling little 800sf condos for $600K. Housing is cheaper is Westchester NY and it’s expensive here compared to redneck middle America.
    The little 1200sf house that was selling for 1.6 mil 4 years ago is now 1.5 mil. It’s not much of a bust. So my feeling is that it’s like Darwin, survival of the fittest county, city or state, but a sustained housing bust has come to an end.

    • 0
    • 0
    • 0 Deem this to be "Fake News"